Imagine Losing Money Without an OTP or PIN
Imagine waking up to find money missing from your bank account—even though you never shared an OTP, PIN, or password. This is exactly how the AEPS Aadhaar scam works. The fraud mainly affects people in rural and semi-urban areas, where Aadhaar-linked banking services are widely used.
How Does the Aadhaar (AEPS) Fraud Work?
Fraudsters begin by illegally obtaining Aadhaar details and biometric data, such as fingerprints. This information often comes from leaked databases or unsafe data handling at unauthorised centres.
Using this stolen data, scammers create fake fingerprints and use them on AEPS-enabled micro-ATMs. Since AEPS transactions rely on Aadhaar number and biometric verification, money can be withdrawn without any OTP or PIN—making it appear as if the account holder authorised the transaction.
Aadhaar Scam and the Role of Mule Accounts
Once the money is withdrawn, it doesn’t go directly to the fraudsters. Instead, it is routed through mule accounts. These are bank accounts that are either rented, sold, or compromised and then used to move stolen funds.
By transferring money through multiple mule accounts, scammers make it extremely difficult for authorities to trace the final destination or identify the real criminals behind the fraud.
How GPS-Enabled Devices Can Help Prevent AEPS Fraud
Security experts believe that GPS-enabled micro-ATMs can significantly reduce AEPS fraud. With this system, transactions are allowed only from the registered location of the device. If a transaction is attempted from a different location, it automatically fails.
This approach not only protects customers but also helps banks detect high-risk areas and prevent large-scale fraud more effectively.
The Future of Aadhaar Security
In the coming years, AEPS devices are expected to become even more secure. Technologies like AI-based fraud detection and biometric liveness checks can help ensure that only real, live fingerprints are accepted.
Importantly, these systems track the location of the machine, not the individual, ensuring better security without compromising personal privacy.
Aadhaar Scam: How Can You Protect Yourself?
Awareness is your strongest defence against Aadhaar-related fraud.
Lock your Aadhaar number and biometrics through the official UIDAI website whenever they are not in use. Avoid updating your Aadhaar at unknown or unofficial centres. When sharing a photocopy of your Aadhaar card, always make it from the physical card and clearly mention the purpose. If you share a digital copy, delete it immediately after use.
By staying alert and following basic safety practices, you can greatly reduce the risk of falling victim to AEPS and Aadhaar scams.
